Can Better Blend request financial statements from the franchisee?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
10.2 Reports.
- (a) Financial Reports. Franchisee shall provide such periodic financial reports as BBF may require in the Manual or otherwise in writing, including:
- (i) a monthly profit and loss statement and balance sheet for the Business within 30 days after the end of each calendar month;
- (ii) an annual financial statement (including profit and loss statement, cash flow statement, and balance sheet) for the Business within 90 days after the end of each calendar year; and
- (iii) any information BBF requests in order to prepare a financial performance representation for BBF's franchise disclosure document, within 30 days after request.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Better Blend can request financial reports from its franchisees. Specifically, Better Blend requires franchisees to submit a monthly profit and loss statement and balance sheet within 30 days after each calendar month's end.
Additionally, franchisees must provide an annual financial statement, including a profit and loss statement, cash flow statement, and balance sheet, within 90 days after each calendar year's end. Better Blend may also request any information needed to prepare a financial performance representation for its Franchise Disclosure Document, which the franchisee must provide within 30 days of the request.
This level of financial reporting is fairly standard in franchising, allowing Better Blend to monitor the financial health of its individual locations and the overall franchise system. Prospective franchisees should be prepared to maintain accurate financial records and submit them according to Better Blend's schedule. This also allows Better Blend to create an accurate financial performance representation for potential franchisees.